The formulas
- Sales test met when sales >= the state sales threshold
- Transaction test met when transactions >= the state transaction threshold
- Nexus when either test is met
How it works
Tax year: Thresholds entered by you; state values change.
In South Dakota v. Wayfair the Supreme Court overruled the physical presence rule and upheld a law that reached sellers delivering more than $100,000 of goods or services into the state or engaging in 200 or more separate transactions there. States now set economic nexus thresholds of their own, in sales, transactions or both, and measure them over a calendar or rolling period.
Enter your sales and transaction counts into a state and the threshold values from that state's department of revenue. Leave the transaction threshold blank when the state uses a sales test only. The tool does not store state rules.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What did Wayfair decide?
A state can require a remote seller to collect sales tax without physical presence, if the law has substantial nexus and is not discriminatory.
Do all states use the same threshold?
No. Each state publishes its own amount, transaction test and measurement period, so enter that state's figures.
Does marketplace sales count?
It depends on the state, which decides which sales are counted, so enter the figures that state counts.
Sources
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.